The future of payments is exciting – but even basics like SEPA payments need to be mastered

The developments in the world of FinTechs often sound more exciting than traditional online banking. Still, mass payments remain at the heart of the payments world – and mastering them is the ultimate challenge. The systems process orders amounting to several billion euros each single business day. Such dimensions alone already make mass payments particularly important.

Well positioned in domestic payments – the advantages:

  • Lower system fees
  • Closer to the customer
  • Market-relevant innovation
  • No cross-border involvement  
  • Lower retailer costs and support from the regulatory authority

From instant payments to RTP – requirements are increasing

Customers that use mass payments want to execute their transactions via modern, personalised online banking systems. Many users are content with the standard features such as an overview of their account statements and the execution of credit transfers in the Single Euro Payments Area (SEPA). Others, however, expect much more sophisticated options like online brokerage and more. With SEPA instant payments, there is now a possibility for real-time credit transfers that covers the constantly increasing demand for fast financial transactions in the age of Web 4.0. 2021 saw the launch of Request to Pay (RTP), a standard that bridges the gap between invoicing and payment and makes digital payment processes without media discontinuity a reality. Alone or in combination, they enable completely new approaches in the payments sector.

New requirements

Whether occasional or professional user – all customer groups have the same high demands on functionality, security, data quality and transaction processing. Thus, solutions beyond the desktop application are now also indispensable for domestic payments. Customers are mobile and want to access their accounts and execute their orders at any time and from any location. Financial institutions need the appropriate software, special portals or banking apps to handle this. Keeping them up to date is not always easy. Adjustments such as the conversion of the SEPA formats to ISO version 2019 of the ISO 20022 standard – SEPA 2.0 – cause further expenses.

SEPA 2.0 as an opportunity

The changes accompanying SEPA 2.0 influence the interaction of formats in the processing chain and thus also the functioning of payment procedures. The risk of incorrect further processing or even of payment rejections can be limited by addressing the issue at an early stage. It is even possible to create added value, optimise processes holistically and increase system functionalities by adapting and interlinking banking systems. 

With their decades of experience, the payments experts at PPI support financial institutions in setting the right course for payments of the future. Get in touch with us for more information.

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 Eric Waller PPI AG

Eric Waller

Senior Manager

 Rebecca Stannull PPI AG

Rebecca Stannull

Managing Consultant


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